Public Utility workers Union (PUWU) has strongly opposed government plans to introduce private sector participation in the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo), describing the move as unnecessary and unsustainable.
At a press conference, union leaders revealed that the Ministry of Energy and Green Transition has appointed a transaction adviser to begin processes toward privatizing the two state-owned power distributors. According to the union, a Technical Steering Committee has already proposed multiple concession arrangements, including a plan to split ECG and NEDCo into four operational units across the country.
The union argued that privatization and private sector participation are essentially the same and warned the government to suspend all such plans. It cited Ghana’s past experiences with privatization and insisted that ECG and NEDCo are capable of performing efficiently under public ownership.
Union leaders pointed to the success of a six-month turnaround programme implemented between July and December 2025 as evidence that reforms—not privatization—are the solution. During the period, ECG’s average monthly revenue reportedly increased from GH¢900 million to GH¢1.7 billion, enabling the company to make regular payments to power generators and avert potential shutdowns.
They noted that the programme received commendation from key government officials, including the Ministers of Finance and Energy, and praised ECG workers for their commitment, discipline, and professionalism throughout the reform period.
Addressing NEDCo’s challenges, the union acknowledged longstanding issues such as high distribution losses and poor revenue mobilization, particularly in parts of the Northern Region. Tamale Township, they said, recorded some of the highest losses. However, they disclosed that the turnaround programme reduced NEDCo’s distribution losses from 47.32 percent in November 2024 to 39 percent in November 2025. Overall system losses were also reduced from 31.58 percent at the end of 2024 to 27.9 percent by the close of 2025.
The union maintained that privatization is neither a viable nor sustainable solution for ECG and NEDCo and instead called for the extension and review of the turnaround programme. It urged the government to halt all steps toward privatization while the review is conducted.
As part of its proposals, the union recommended the establishment of a stakeholder board to oversee ECG and NEDCo, the introduction of clear performance targets for management, and stronger oversight powers for the Minister of Energy.
The union further called for open and competitive procurement processes in electricity generation and demanded an end to political interference in the energy sector.
In conclusion, union leaders emphasized that ECG and NEDCo remain critical to Ghana’s economic development and social equity and warned that privatization could undermine access to affordable and reliable electricity nationwide.
Story by: Ernest Frimpong
